Brightpath provides tailored financing options to help people buy homes when they don’t meet traditional banks’ mortgage lending criteria.
Unlike traditional banks, we work with people who are:
A private mortgage is a fast, flexible financial tool to help homebuyers or businesses who fall outside the criteria of traditional lenders.
The mortgage rate is typically a little higher, but the conditions are minimal and can help homebuyers solve a temporary problem to secure their desired property until they can move to a mortgage with a traditional lender down the line.
Ask your broker or agent to evaluate Brightpath. Don’t have a broker? Contact us and we can recommend some licensed brokers in your area.
Our private mortgages are a flexible financing option for situations where banks, credit unions, and even equity-based lenders will not help. The interest rate can be higher, but conditions are kept to a minimum. There are many reasons why someone might need private financing, which include stopping a Power of Sale, paying off property tax arrears, dealing with CRA arrears, settling collections or judgements, a cash infusion due to an extended absence from work, needing greater flexibility with debt servicing ratios due to income issues, getting out of a rent to own situation or providing temporary bridge financing. Credit issues are usually one of the reasons for requiring a private mortgage. While prime lenders have strict credit guidelines, Brightpath does not. Someone coming out of bankruptcy may need more time to rebuild credit before a bank will consider a mortgage. Or someone currently in a consumer proposal may benefit from paying it off early through private financing, which will allow them to begin rebuilding credit much sooner. Often the self-employed have difficulty providing sufficient proof of income to banks and other prime mortgage lenders. As a result, they are often turned away. However Brightpath Capital has a more common-sense approach to lending, and can take into account details that banks many exclude.
In most cases, the only requirements that we will need is a summary of the situation, a credit report, an appraisal and something to reasonably show the ability to make payments. While credit will not make or break an approval, it can impact the interest rate. Same with the appraisal – the more equity there is, the less risk to the lender which can help lower the costs. Location is another important factor. A property located in a major urban area is viewed more favourably than a rural or remote location. That said, Brightpath Capital has approved mortgages all over Canada. We offer creative financing solutions to even the toughest situations.
Although helpful in challenging circumstances, a Brightpath Capital mortgage should be viewed as a short term solution to address the immediate need of financing and allow the situation to be resolved so the mortgage can then be moved to a cheaper source once things are back on track. We offer open terms without any penalty to break it early, and can be in 1st or 2nd position depending on the situation. In the case of a 2nd mortgage, it can be timed to the maturity date of a 1st mortgage, so the two can be combined upon maturity.